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Liquid Staking and Slow Burn Arbitrage Protocol built on #Terra and #TerraClassic. TG: https://t.co/cqfIpelqbk DOC: https://t.co/IG6QLjg3iL

Mar 29, 2023, 11 tweets

1/ ‼️Eris launch Automated Arbitrage Vaults‼️

Arbitrage between $LUNA & $LUNA LSDs just got easier and more profitable 🙀

Deposit $LUNA and sit back and watch our arbitrage bots grow your collateral 🤖

Try it now ➡️ erisprotocol.com/terra/arb-vault

More details 👇🏻🧵

2/ How it works ⚒️

For a user it's simple:

1️⃣ Go to ➡️ erisprotocol.com/terra/arb-vault
2️⃣ Connect your wallet
3️⃣ Bond $LUNA and receive #arbLUNA as a representation of your share of the pool
4️⃣ Sit back and watch our Arb bot grow your $LUNA collateral

3/ Behind the scenes 🔩

When an arb opportunity between $LUNA & $LUNA LSDs appears, the arb bot will:

1️⃣ Trade a % of the liquid $LUNA in the vault into the $LUNA LSD
2️⃣ Initiate the on-chain unbonding (slow burn) mechanism to redeem the LSD for it's underlying $LUNA value

4/ Arb & Repeat 🔁

Following a successful arb trade the unbonding process will typically take 21-24 days until liquid $LUNA is returned to the vault.

Once liquid $LUNA is returned to the vault the arb bot immediately utilizes it to search for the next arbitrage trade.

5/ Withdrawing from the Vault ⛔

If a user wants to withdraw $LUNA from the vault they have 2 options:

1️⃣ Unbond: Redeem your #arbLUNA for it's underlying $LUNA value -this process takes 25 days.

A withdrawal fee of 0.5% applies split between protocol operations & #ampluna

6/ Withdrawing from the Vault ⛔

2️⃣ Withdraw: When there is enough liquid $LUNA in the vault a user can immediately swap #arbLUNA to $LUNA with a 5% penalty fee which remains in the vault pool, boosting the APY of other #arbLUNA holders

The 0.5% withdrawal fee also applies.

7/ Vault Status 🔏

The status of the $LUNA in the vault can be viewed at anytime:

- How much $LUNA is liquid
- How much $LUNA is unbonding
- At what % of arb opportunity the liquid $LUNA will be deployed
- Previous trades
- Vault APY
- $LUNA/#arbLUNA redemption rate

8/ Performance 📈

The Arb Vault has been open for 36 hours and has already made 11.5% in profit from arbitrage trades for #arbLUNA holders.

Just like this trade, swapping 826 $LUNA to 798 #ampLUNA worth 905 LUNA. Adding 79 LUNA value to the vault 🤯

terrasco.pe/mainnet/tx/81D…

9/ Which LSDs are included? 🤔

The arb vault has initially gone live with just #ampLUNA - but will be expanded to other Terra LSDs over time.

There's also no reason why a similar methodology couldn't be applied to LSDs on other chains in the future 💭

10/ Learn More 📚

To learn more about how Eris' Arb Vaults work, visit our docs ➡️ docs.erisprotocol.com/products/arb-v…

OR

Come ask questions in Telegram ➡️ t.me/eris_protocol

Go and have a look yourself ➡️ erisprotocol.com/terra/arb-vault & check out our other products wile you're there!

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